Posted on April 29, 2004
This proves the Senate can come to a good result on a complex issue that affects millions of Americans and every state and local government. It balances well two important principles: federalism and free markets. It temporarily bans state and local taxes on Internet access while doing minimal harm to state and local governments. The bill is a huge improvement over that passed by the House because:
It is temporary, not permanent.
It allows states already collecting taxes on Internet access to continue to do so for two or four years.
Most importantly, it makes clear that states and cities can continue to collect taxes on telephone services, even if telephone calls are made over the Internet.